KOEI TECMO HOLDINGS CO., LTD.
3635・Prime Market・Information & Communication
Entertainment Business
The core business of the Koei Tecmo Group, developing and distributing game content under multiple brand IPs with a global footprint.
| Period | Current | Previous | Change |
|---|---|---|---|
| Segment Sales (External Customers + Intersegment) | ¥82,541 million | ¥78,078 million | ↑ |
| Segment Sales to External Customers | ¥82,239 million | ¥77,738 million | ↑ |
| Segment Profit | ¥36,642 million | ¥31,479 million | ↑ |
| Segment Profit Margin | 44.4% | 40.3% | ↑ |
| Share of Group Total Sales | Approx. 93% | Approx. 94% | — |
Business Details
The core segment engaged in the development and sale of entertainment content. It comprises multiple brands including "Shibusawa Kou," "ω-Force," "Team NINJA," "Gust," "Ruby Party," "midas," and "AAA Studio," with diverse revenue models spanning package games, online, mobile, and IP licensing. For FY2026 (ending March 2026), sales were ¥82,541 million, accounting for approximately 93% of the Group's total sales of ¥88,393 million, making it the flagship segment.
Recent Overview
Multiple major titles contributed to results, achieving record-high sales and segment profit that exceeded the prior year.
In FY2026 (ending March 2026), 14 package game titles were released. "Shin Sangoku Musou ORIGINS" won the Excellence Award at the Japan Game Awards 2025, among other honors, and a Nintendo Switch 2 version was also released. "Nioh 3" achieved the series' fastest 1 million units sold and surpassed 10 million units in cumulative series sales. "Poko a Pokemon" surpassed 2.2 million units within 4 days of release. "Zelda Musou: Fuuin Senki" surpassed 1 million units in cumulative worldwide shipments. Driven by the contribution of these major titles, segment sales increased 5.7% year on year to ¥82,541 million, segment profit increased 16.4% year on year to ¥36,642 million, and the segment profit margin improved to 44.4%.
Key Products
Growth Drivers
- Expansion of sales scale through the continuous rollout of multiple major titles (each planned to sell over 1 million units)
- Continued revenue contribution from IP-licensed titles (such as "Sangokushi: Shinsen") and the launch of new services for IP-licensed titles (5 titles in FY2026, ending March 2026)
- Maximization of back catalog revenue through multifaceted development of existing IP (power-up kits, remasters, sequels)
- Global sales of contract-developed titles through collaboration with major publishers such as Nintendo, The Pokémon Company, and Xbox Game Studios
- Continuous rollout of multiple new titles and strengthening of global sales capabilities under the 4th Medium-Term Management Plan (starting FY2025, 3-year plan)
- Enhanced global market presence through organizational restructuring of the IP business division and marketing division
Risks
- Risk of release delays due to changes in development schedules or failure to meet quality standards for new titles
- High dependence on sales through specific platform providers (Apple, SIE, Valve, etc.), making the business susceptible to changes in platform policies
- Increased costs to meet AAA-level quality requirements amid intensifying global competition
- Foreign exchange risk (sales to North America, Europe, and Asia account for a substantial proportion of the total)
- Profit pressure in FY2027 (ending March 2027) due to increased investment in human capital and higher development and selling expenses (Group-wide operating profit, including the Entertainment Business, is projected to decrease 13.9% year on year)
- Temporary cost increases associated with relocation to the new office (Yokohama Symphostage) starting in fiscal 2026
Last updated: June 19, 2026